Digital nomadism has been a hot topic since the pandemic, catering to the new aspirations of professionals who want to work in a "vacation" setting. Countries benefit from this trend, too, and are looking to these new expatriates to boost their economies. In East Asia, two more countries are venturing into the digital nomad scene. Here's a closer look.
Countries embracing digital nomadism
Good news for aspiring digital nomads: the map of opportunities is expanding into East Asia. Following the footsteps of Spain, Croatia, Brazil, Mauritius, and Costa Rica, East Asian countries are joining the growing list of nations offering digital nomad visas.
The motivation is clear. The pandemic dealt a severe blow to tourism, dragging other major economic sectors down with it. During lockdowns, workers discovered the perks of remote work, which can be done from anywhere. Governments quickly recognized the economic potential of millions of remote workers worldwide. Since the pandemic, digital nomadism has become a new international mobility trend, with social media buzzing with tales of digital nomads living the good life in Mexico, Portugal, the UAE, or Norway.
Japan and South Korea now enter the list of "digital nomad hotspots." Both have introduced new visas to attract foreign professionals.
Japanese and Korean digital nomad visas
Japan's Ministry of Foreign Affairs announced its visa in April, and South Korea launched it in February. While the eligibility criteria are similar to those in other countries (being of legal age, working independently or for a foreign company), Japan and South Korea stand out for their high income requirements. To qualify for Japan's digital nomad visa, applicants must earn at least 10 million yen annually (approximately $64,000). South Korea requires applicants to earn at least double the previous year's national gross income per capita, amounting to 85 million won in 2023 (around $66,000). These requirements are well above those of Anguilla, Antigua and Barbuda, and Barbados (which require an annual income of $50,000), considered among the most expensive digital nomad destinations.
In addition to proving a high income, digital nomads who intend to move to Japan or South Korea must have health insurance coverage of at least 10 million yen (about $64,000) for Japan and 100 million won (about $73,000) for South Korea. These amounts are intended to cover them for their stay and ensure coverage in case of repatriation needs. Applicants must prove their financial capability with official bank certificates. The Korean digital nomad visa allows a maximum stay of 2 years, while the Japanese visa permits only a 6-month stay.
Digital nomads: A solution to post-Covid crises?
The primary goal of these new digital nomad visas is to boost tourism. The Japan National Tourism Organization celebrates the post-Covid rebound (over 25 million foreign tourists in 2023, six times more than in 2020), partly due to the weak yen. However, the weak yen also penalizes businesses and locals. Additionally, the impact of the pandemic still weighs on Japan's economy. In recession since late 2023, Japan has lost its position as the world's third-largest economy to Germany. In 2010, it lost its rank as the second-largest economy to China. Japan's GDP contracted by 0.5% in the first quarter of 2024, slightly more than the predicted 0.3% decline.
South Korea also narrowly avoided recession in early 2023. Despite its resilient performance during COVID-19, thanks to its robust industry, the economy suffered from rising raw material costs, international geopolitical instability, and the slowdown of the Chinese economy. In 2023, President Yoon Suk-yeol established a new public holiday on October 2 to encourage residents to take vacations and spend more. This addition will give the population a week-long break (October 2 follows two already existing holidays).
Struggling businesses
Concerned, Japanese companies are reducing their investments. Since Covid, Japan has seen a resurgence of "zombie" companies: those that have existed for over 10 years but are making minimal profits. According to Teikoku Databank, 17.1% of Japanese companies are in this situation, particularly in retail, transportation, and manufacturing. South Korea's economy is doing slightly better (+1.4% in early 2024), driven by increased exports. The OECD even expects 2.6% growth this year. Japan's forecasts are more modest (+0.5%).
This is the context in which both countries launch their digital nomad visas. In Japan, this measure is part of a broader economic and social revival plan. Prime Minister Kishida has introduced multiple initiatives to attract more foreign workers to support the economy and demographics. Japan is gradually opening up to immigration (with J-Skip, J-Find visas, and the reform of the Specified Skilled Worker visa) and hopes the new digital nomad visa will appeal to foreign professionals. South Korea is also counting on an increase in foreign visitors (20 million expected this year) to stimulate the tourism sector.
Attracting foreign talent
Will the Japanese and Korean digital nomad visas hit their target? Propelled by the Hallyu wave, Korean culture is attracting many potential expatriates. International students dream of Seoul. Artists and aspiring artists eagerly await the creation of the K-culture training visa, nicknamed the "Hallyu visa." Japan has revived its "Cool Japan" soft power strategy. Launched in the early 2000s, Cool Japan aims to promote Japanese culture internationally. In early June, the Japanese government announced plans to quadruple the foreign market for manga, anime, and video games. The goal is to reach 20 trillion yen (about $128 billion) in export revenue by 2033.
Digital nomads have a significant place in these projects. However, some fear that the Korean and Japanese digital nomad visas will have a limited economic impact. In fact, the strict labor laws in both countries prohibit digital nomads from engaging with local companies. These foreign talent must work exclusively with foreign entities. Therefore, employers hoping to send their employees to penetrate the South Korean and Japanese markets should not use the digital nomad visa. Another limitation is the high income requirement. Skeptics argue that these amounts will deter the very young professionals that South Korea and Japan aim to attract—avid consumers of Korean and Japanese pop culture. Critics also highlight the short duration of the Japanese visa as a drawback.
Other digital nomad hotspots in Asia
Malaysia and Indonesia have already made the move, and Thailand is joining in. For these countries, as for South Korea and Japan, digital nomadism is a way to boost the tourism economy.
Malaysia and Indonesia aim to attract foreign talent
Introduced in October 2022, Malaysia's digital nomad visa (DE Rantau program) allows digital nomads to live and work in the country for 3 to 12 months, with an option to extend for another year. Applications can be submitted online, and family members can be included for an additional fee. The annual income requirement for Malaysia is $24,000, which is significantly lower than that of South Korea and Japan.
Malaysia aims to attract a wide range of foreign professionals, including remote employees and freelancers. The visa aims to meet the new demand from expatriates who want a formal status to work abroad in a "vacation" setting. The government sees the development of "workation" (work and vacation) as a boost for the tourism economy. Malaysian tourism is gradually recovering after the pandemic. According to the Malaysian Ministry of Tourism, the country welcomed 17.8 million foreign tourists in 2023, a 116.65% increase from 2022. The country aims to attract 27.3 million foreigners this year, with estimated revenues of about $21 million.
Indonesia, especially Bali: The "hub" for digital nomads
Bali continues to attract foreign professionals. The Indonesian government has introduced the E33G (remote worker) visa granting a one-year residence permit (KITAS). The income requirement (2000 dollars per month) is more affordable than those of South Korea and Japan. Bali aims to be the hub for digital nomads and aspires to be a model for responsible tourism and environmental preservation.
Thailand joins the digital nomad trend
While the impact of these visas on tourism and the economies of South Korea and Japan remains to be seen, Thailand has recently joined the digital nomad trend. The Southeast Asian country now offers the "Destination Thailand Visa (DTV)," allowing expatriates to stay for up to 5 years. However, holders of the DTV must leave Thailand every 180 days and pay a $270 fee each time they return.
The conditions for acquiring the visa are similar to those in Indonesia and Malaysia. Applicants must be self-employed or work for a foreign company and be at least 20 years old. The DTV also extends to expatriates wanting to engage in cultural activities in Thailand (such as learning to cook or practicing a sport). So far, the government has not specified a minimum income requirement. However, it is estimated that foreign applicants should prove they hold at least 500,000 baht (about $13,600). Eligible foreign nationals can apply online, while others must visit their embassy or consulate. Thailand aims to leverage its popularity among tourists to boost its economy.
Useful links:
South Korea: Digital Nomad Visa (F-1-D workation visa)
